Citigroup doesn’t have to worry about being forced to admit wrongdoing in a three-year-old regulatory settlement after a federal appeals court on Wednesday ruled it didn’t matter.

The Securities and Exchange Commission has wide latitude to settle cases and allow defendants to sidestep the issue of guilt, the appeals court ruled.

“Trials are primarily about the truth,” the court ruled in a much-anticipated 28-page ruling. “Consent decrees are primarily about pragmatism.”

The appeals court ruling overturns a decision by trial court judge Jed Rakoff — who refused to rubber-stamp Citi’s $285 million settlement with the SEC because, without addressing guilt, he couldn’t know if the penalty fit the crime.

The appeal court ordered the case back to Rakoff — who is now expected to approve the settlement.

The case, brought by former SEC boss Mary Schapiro, involved accusations that Citi misled investors into buying securities that contributed to the 2008 housing crisis.

“We are pleased with today’s ruling by the Second Circuit Court of Appeals reaffirming the significant deference accorded to the SEC in determining whether to settle with parties and on what terms,” Andrew Cereseny, director of the SEC’s enforcement decision, said in a statement.

“While the SEC has and will continue to seek admissions in appropriate cases, settlements without admissions also enable regulatory agencies to serve the public interest by returning money to harmed investors more quickly, without the uncertainty and delay from litigation and without the need to expend additional agency resources.”

Rakoff declined to comment through a spokesman.

“The decision is clearly a win for the SEC,” said Thomas Gorman, a former lawyer at the SEC’s enforcement division who now practices at Dorsey Whitney.

“The Circuit Court said, look, the SEC can make the choice of how it wants to bring the case,” he added.

While the Rakoff decision was overturned, new SEC boss Mary Jo White, vowing a stronger stance on such cases, has won guilty pleas from defendants.